On Monday, May 24, oil prices extended the rally that got under way last week as Brent rose 2.7% to $68.34/bbl, and WTI surged 3.3% to $65.9/bbl.
The market got a boost from statements by US officials that there is still a long way to go before an agreement is reached with Iran on its nuclear program, while the negotiators still face a challenging road ahead. The announcement by G7 countries about halting the use of coal as fuel over the next few years, coupled with statements from representatives of the world's largest oil companies that oil and gas will be in demand for at least several more decades, stoked to a flurry of buying in the futures market.
This morning, oil prices moved back into a correction, likely on news that Iran is discussing an increase in oil exports with China: the Brent price shed 0.4%, but remains above $68/bbl, while WTI dipped 0.42%. Our Brent price forecast for today is in the range of $ 68-69/bbl.